Indonesia is working on a regulation to restrict to 100,000 hectares the plantation area of new private palm oil firms, a government official said, as the world’s top producer of the edible oil seeks to open up the industry to smaller players.
The law, an amendment to a 2007 regulation, will exempt state-owned firms and co-operatives and will not affect companies that already have permits, said Gamal Nasir, director general of plantations at the agriculture ministry.
“Hopefully it can be imposed this year,” Nasir told Reuters on Wednesday, adding that the regulation would not be retroactive.
“Companies that already have acquired more than 100,000 hectares can still manage them, according to their permit.”
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